For the 240,000 passengers who fly American Airlines each day, the airline’s bankruptcy filing should have little noticeable impact. AMR Corp., the airline’s parent company, says it will continue normal flight operations as it heads to federal court to restructure. The move is aimed at reducing AMR’s hefty costs, including for labor. Delta, United, Continental and US Airways have all gone through Chapter 11. Travelers continued to book tickets, planes still took off and landed, and frequent flier miles were still earned and redeemed. The only risk to passengers is if the restructuring fails, such that the airline ultimately liquidates and ceases to fly. Still, many travelers are protected in that case if they bought tickets with a credit card. As for frequent flier miles, Eastern Airlines, Pan Am and Trans World Airlines all ceased flying, but miles in their programs were transferred over to other airlines that bought some of their assets. TWA miles actually went into American Airlines’ frequent flier program, AAdvantage. “Miles are safe,” says Gary Leff, co-founder of frequent flier site MilePoint. He says the bankruptcies of past airlines “are instructive,” and he suggests there may be some promotions to keep loyal travelers. American is the nation’s third-largest airline, behind United Continental and Delta Air Lines. Like its rivals, American has raised fares over the past year to offset the high cost of fuel. Read more about American Airlines’ Chapter 11 filing from The Associated Press here.
Today’s poll question: Are you less inclined to book a flight with American Airlines in light of its Chapter 11 filing?
